On Sunday, President Joe Biden signed the Social Security Fairness Act, a bipartisan legislation that will significantly impact millions of public sector workers. The act repeals two longstanding provisions—the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP)—that had previously reduced Social Security benefits for individuals receiving government pensions, such as teachers, firefighters, and police officers.
These provisions, in place since over 40 years ago, directly affected retirement income. The WEP reduced Social Security payments for those who received pensions from jobs where Social Security taxes were not withheld. As of the end of 2023, this had an effect on about 2 million beneficiaries. Conversely, the GPO restricted spousal and survivor benefits earned by individuals receiving government pensions; thus affecting about 750,000 beneficiaries up to December 2023. The repeal will help millions by offering full Social Security benefit coverage for public employees and their families.
In addition, over 2.5 million Americans will receive lump-sum payments starting in 2024 to compensate for the benefits they lost. On average, these individuals will see an increase of $360 per month in their Social Security payouts. “By signing this bill, we’re extending Social Security benefits for millions of public employees and their families,” Biden remarked during the signing ceremony.
Payments of Social Security due after December 2023 will be impacted by the changes, although the SSA has not yet released information on the implementation timeline. Advocacy groups have hailed this legislation as a historic achievement, with Max Richtman, president of the National Committee to Preserve Social Security and Medicare, calling the repeal “historic” after decades of lobbying.
The act garnered bipartisan support in the Senate and House of Representatives. On December 21, the Senate passed the bill with a 76-vote majority led by Senators Susan Collins (R-Maine) and Sherrod Brown (D-Ohio). In November, the House voted in favor of the bill by a 327-vote majority, led by Representatives Abigail Spanberger (D-Va.) and Garret Graves (R-La.).
Public retiree advocates have long sought the repeal of the WEP and GPO provisions. William Shackelford, president of the National Active and Retired Federal Employees Association, said this victory has been more than four decades in the making. “This victory is more than 40 years in the making,” Shackelford said, adding that it honors those impacted by the provisions who did not live to see the change.
